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When setting up a business

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Financial planning

Applying for financing during the setting up of a company requires careful planning and financial calculations.  The financing requirement determines whether Finnvera can act as the only provider of funding or whether other sources and sufficient self-financing are also needed. Banks are often the first choice for many applicants. In such cases, part-guarantees (Start Guarantee) may be the right solution. Under a Start Guarantee arrangement, the bank submits the application for guarantees to Finnvera on your behalf.

The financing requirement usually becomes clear when you prepare a business plan for your company.  You can draw up the business and performance plans using the electronic tool provided in My Enterprise Finland service. These plans are also required as attachments to the financing application submitted to Finnvera.

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The company needs less than 50,000 euros

Finnvera can act as the sole source of financing for newly established companies requiring less than 50,000 euros. For larger amounts, more providers of financing and sufficient self-financing are also required.

The minimum amount of loan provided by Finnvera is 10,000 euros.

Bank loans and Finnvera guarantees

However, if you are seeking a loan from a bank but do not have the collateral required by the bank, a partial guarantee provided by Finnvera may be the solution. In projects of such scale, the guarantees provided by Finnvera can cover a maximum of 80% of the loan.
The bank submits the application for the guarantees directly to Finnvera on your behalf. The loan and repayment terms are in accordance with the loan agreement concluded with the bank.

Link: Start Guarantee

The company needs more than 50,000 euros

If more than 50,000 euros is required, other providers of financing (usually a bank) and sufficient self-financing are also needed.  In company acquisitions, the seller may also provide some of the funding.
The external financing can be jointly provided by Finnvera and the bank as follows:

  • Finnvera and the bank each provide a loan.
  • The bank grants a loan that covers all financing needs and is provided with part-guarantees by Finnvera. If the Finnvera guarantees amount to a maximum of EUR 80,000 and 80 per cent of the loan, the bank can submit an application for the guarantees (Start Guarantee) directly to Finnvera on your behalf.

Finnvera's share of the financing

Finnvera's share of the financing (provided as a loan or loan guarantees) is on a case-by-case basis. Typically Finnvera's share will be 50 %. In projects involving growth companies and internationally oriented and innovative enterprises, Finnvera can temporarily act as the main provider of financing, supplying more than 50% of the loans and guarantees.
If case of a project requiring pre-delivery financing Finnvera's share of financing could be as high as 80 %.

Self-financing

The self-financing requirement depends on the content of the project.  In investments, Finnvera typically requires that 10–20 % of the funding is provided as self-financing, while in company acquisitions and generational transfers the requirement is 20%.
Link: Start Guarantee

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